Yes there is a floor. The manufacture cost for the refinery; transportation; EPA charges; Station cost; are just a few. Oil could be free and these cost will stay the same. With high price oil the oil price is a bigger percentage so it effects the price of the gas and diesel more easily.
But with that said the price of oil does not set the pump price. The price at the station across the street does set the pump price. Also margins at most big stations are pretty good. It is because they are the jobber and retailer. A mom and pop store could never keep up with the big boys because of this. The big stores can sell gasoline at the pump for less than the mom and pop stores pays for it and still make money. We use to (may still have) laws in Louisiana that forced the big boys to sell gasoline with at least a xx markup to try and protect small stores from this.
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Today's Featured Article - 12-Volt Conversions for 4-Cylinder Ford 2000 & 4000 Tractors - by Tommy Duvall. After two summers of having to park my old 1964 model 4000 gas 4 cyl. on a hill just in case the 6 volt system, for whatever reason, would not crank her, I decided to try the 12 volt conversion. After some research of convert or not, I decided to go ahead, the main reason being that this tractor was a working tractor, not a show tractor (yet). I did keep everything I replaced for the day I do want to restore her to showroom condition.
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